Credit Card Forum - Best Credit Card Deals, Reviews & Offers - View Single Post - How Visa and Mastercard encourage merchants to do their job!

Mogul of Pineapples · 06-03-2008, 03:15 PM

Yep Visa and Mastercard do try and make merchants be held accountable for fraud. When a customer report a fraudulant charge, if it's found to be accurate and the charge is reversed, that's called a chargeback. Merchants can't have more than 1% of the dollar value of all volume processed by chargebacks. If they have more than 1% the merchant's processing bank starts getting charged fines of $5,000 to $25,000. Those fees are obviousy passed on to the merchant even if it's indirectly. Also if the chargeback ends up being valid the merchant may have to pay a fee of $50 to $75. Yeah I know it's hard to believe but all merchants actually have motivation to check your IDs hahaha

06-03-2008, 03:15 PM	#1
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 355	How Visa and Mastercard encourage merchants to do their job! Yep Visa and Mastercard do try and make merchants be held accountable for fraud. When a customer report a fraudulant charge, if it's found to be accurate and the charge is reversed, that's called a chargeback. Merchants can't have more than 1% of the dollar value of all volume processed by chargebacks. If they have more than 1% the merchant's processing bank starts getting charged fines of $5,000 to $25,000. Those fees are obviousy passed on to the merchant even if it's indirectly. Also if the chargeback ends up being valid the merchant may have to pay a fee of $50 to $75. Yeah I know it's hard to believe but all merchants actually have motivation to check your IDs hahaha Last edited by Mogul of Pineapples : 06-03-2008 at 03:18 PM.